History of Economic Thought-- Notes for 1.12.10

1.12.10

 

Neoclassical economics --> its what we are taught in economics class

 

        ----> where every decision is about benefits and costs

 

Orthodox vs. Heterodox

 

Neoclassical is orthodox

 

There are many types of heterodoxy (from the word heretic) such as neuroeconomics, experimental economics, feminist economics, American institutionalsits school, Austrian School, Binary Economics(?)...

 

The christian church --> the symbol for orthodox Christians is the cross

 

Orthodoxy in economics is symbolized by the supply/demand curve.

 

Back in the day the heretics (heterodox) were burned at the stake... now you just get fired.

 

Orthodox think of "economic man"

 

Keynes accepted supply demand in micro but rejected it in macro

 

Where did the Free Market version of economies a la Reagan 1980 and afterwards come from?

   --->  it is an Anglo-Saxon model

        ---> England up to WWII America afterwards..

 

We commonly have a superior attitude towards our economic approach and our wealth as a nation--"we're smarter" "we work harder"

 

The realities of human history tell a different story.

 

American and British Economics -- "English speaking white man economics"

Economics is partly a function of who is dominating the world.

 

IN world history there was an inflection point at the Industrial Revolution

    ---> before 1800's how did you get wealthy as a nation?  ---> by taking it from another nation

Industrial Revolution started in England

   --> Steam Engine in 1769 revolutionized the world.

 

Is the in knowledge that spiked up [he shows a graph that looks just like Shillers House bubble graph] at the start of the industrial revolution a bubble?  Have we been enjoying a 250 year bubble?

 

------

Seeds of its own destruction by Martin Woolf in the Financial Times

 

Economics--a lot of it is ideology and faith.

 

Economists clash on shifting sands by Robert Skidelsky  in the Financial Times

Can we model economics like physics or a social science?  Neoclassicals say physics  Heterodoxs say social science...

 

Newton:  "I can predict the motion of heavenly bodies but not of the madness of crowds."

 

Posted via email from Jim Nichols